The Federal and New South Wales governments are at loggerheads after the state withdrew from the Commonwealth's scheme to provide a computer for every senior high school student.

The computers-in-schools plan was central to Labor's federal election pitch. So was cooperative federalism.

But New South Wales has directed its government schools not to apply for the second round of computer funding.

Federal Education Minister Julia Gillard says the state has pulled out because the Commonwealth refused to extend the deadline for funding applications.

She says the decision is disappointing but an extension would have delayed funding for schools in other systems.

The Federal Opposition's education spokesman, Christopher Pyne, says he does not buy that explanation.

"The digital education revolution has been exposed as a digital education damp squib, it's a shambles," he said.

"Julia Gillard has promised big and delivered low and New South Wales, because of the lack of services, the lack of infrastructure to back up the computers, has decided it's all too difficult and they won't be taking part."

New South Wales has previously been critical of the lack of federal assistance once the computers are delivered.

State Education Minister Verity Firth has called on the Federal Government to keep its funding promises made during the election.

"What has happened is the Commonwealth has made this promise and the promise is akin to promising someone a new suit, providing them with the pants and asking them to buy the jacket themselves," she said.